TY - JOUR
T1 - The State of Origin of Australian Equity
T2 - Does Active Fund Manager Location Matter?
AU - Fong, Kingsley
AU - Gallagher, David R.
AU - Lee, Adrian D.
PY - 2008
Y1 - 2008
N2 - We examine the relation of active equity fund managers’ location proximity to a stock's headquarter and fund managers’ stock selection skill and investment behaviour using a representative sample of Australian institutional equity funds. Contrary to the findings of much international research, our study reveals evidence which is inconsistent with a location advantage for Melbourne and Sydney active equity funds. Both Melbourne and Sydney fund managers overweight Melbourne stocks, exhibit skill in picking Sydney stocks and avoid poor performing Melbourne and Sydney stocks. In addition, we find no evidence of word-of-mouth trading effects in Melbourne or Sydney funds. Taken together, this suggests information asymmetries arising from location are weak for Melbourne and Sydney funds.
AB - We examine the relation of active equity fund managers’ location proximity to a stock's headquarter and fund managers’ stock selection skill and investment behaviour using a representative sample of Australian institutional equity funds. Contrary to the findings of much international research, our study reveals evidence which is inconsistent with a location advantage for Melbourne and Sydney active equity funds. Both Melbourne and Sydney fund managers overweight Melbourne stocks, exhibit skill in picking Sydney stocks and avoid poor performing Melbourne and Sydney stocks. In addition, we find no evidence of word-of-mouth trading effects in Melbourne or Sydney funds. Taken together, this suggests information asymmetries arising from location are weak for Melbourne and Sydney funds.
UR - http://www.scopus.com/inward/record.url?scp=44449176088&partnerID=8YFLogxK
U2 - 10.1177/031289620803200307
DO - 10.1177/031289620803200307
M3 - Article
AN - SCOPUS:44449176088
SN - 0312-8962
VL - 32
SP - 503
EP - 523
JO - Australian Journal of Management
JF - Australian Journal of Management
IS - 3
ER -